INTERVIEW: China must surrender know‑how for EU access, says critical mineral CEO

Brussels – Europe’s vulnerability in the global critical minerals market is laid bare by the CEO of a major mining and processing firm, who tells Euractiv that China must surrender proprietary know‑how as a precondition for accessing the EU market. The stark prescription comes amid mounting tensions over rare earths and other essential inputs for clean technology, defence and advanced manufacturing — sectors where Europe remains heavily dependent on imports from Beijing.
“China’s dominance is not just about raw materials — it’s about the technologies and processes that turn those resources into usable products,” the CEO said in an interview. “If Chinese companies want to sell into the EU, they should be required to share that know‑how with European partners as part of joint ventures. Otherwise we are simply feeding the machine that marginalises our industry.”
His comments reflect deep frustration inside European industry and government that recent Chinese export controls on critical minerals and processing technologies have given Beijing a veto over European supply chains. In late 2025, Chinese authorities tightened licensing for exports of rare earth elements and other critical inputs, demanding detailed information about products, customers and production processes before approving foreign shipments. The effect has been to give Chinese regulators a strategic window into foreign industrial networks while prolonging Europe’s reliance on Beijing for essential inputs.
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Why the concern?
Critical minerals — such as lithium, cobalt, gallium, germanium, and rare earth elements (REEs) — are central to Europe’s climate, digital and defence strategies. They feed into electric vehicles, renewable energy infrastructure, semiconductors, and high‑precision military equipment. Yet China currently dominates processing and refining capacity for many of these materials, accounting for roughly 98% of rare earth processing and high shares of other strategic inputs.
This imbalance has prompted Brussels to adopt a range of new policies, notably the EU’s Critical Raw Materials Act, which aims to boost domestic extraction, processing and recycling, and reduce reliance on external suppliers by setting milestones for European production by 2030.
Despite such measures, European industry insiders often describe the current situation as untenable. One senior executive told Euractiv that licensing requirements imposed by Beijing have forced German firms to divulge commercial data that could be exploited for leverage, effectively revealing vulnerabilities in Europe’s supply chains and defence industrial base.
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“It’s one thing to sell raw materials — it’s another to expose your competitive strategies, your customer lists, your future plans,” the executive said. “We are being asked to trade strategic information for a licence. That’s not a market; it’s coercion.”
A radical proposal
In this context, the CEO argued for market access reciprocity — similar to policies once employed by Beijing itself — whereby foreign firms must enter joint ventures with local companies and share technology as a condition of access. “Europe should require this not just for equity, but for the exchange of technical expertise that raises our own capabilities,” he said.
This approach echoes recommendations from European economic analysts who argue that Brussels has historically undervalued its leverage as one of China’s largest export markets. Such commentators contend that attached conditions — including joint ventures with technology transfer provisions — could help balance decades of asymmetrical integration.
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Critics of the proposal caution that forcing technology sharing may backfire if it drives Chinese investment away or triggers retaliation. “China is unlikely to agree to this voluntarily,” said one European diplomat, speaking on condition of anonymity. “This would effectively mean we are shaping industrial policy on Beijing’s terms, rather than ours.” They argue that multilateral negotiation and diversified sourcing should remain the priority.
EU policy responses
In recent months, EU policymakers have accelerated efforts to build alternative supply chains. In addition to the Critical Raw Materials Act, Brussels has expanded partnerships with countries such as Canada, Australia and Ukraine to diversify sourcing, while also investing in domestic research and processing capacity.
European Commission officials have signalled that a coordinated response to Chinese export curbs is being formulated, although details remain under negotiation. President Ursula von der Leyen has publicly called for “smoother, predictable supply chains” and emphasised the importance of reduced dependencies.
Some analysts say the EU should contemplate deeper strategic tools — including using trade defence mechanisms or anti‑coercion instruments — if diplomatic engagement fails to yield results. Others warn that protectionist responses could escalate tensions and disrupt global markets.
Industry concerns
For European manufacturers, unstable access to critical minerals has tangible consequences. Delays in obtaining REEs or gallium, for example, can stall production of electric motors or semiconductor components, affecting competitiveness in future industries. It also complicates long‑term green and defence planning.
“In Europe, we have the demand and the industrial capacities — but we lack secure, affordable access to the materials that enable innovation,” said the CEO. “China has used its dominance to its advantage for too long. We need a level playing field, not one tilted in Beijing’s favour.”
As the EU grapples with how to balance engagement with strategic autonomy, the debate over reciprocity and technology sharing is likely to intensify — underscoring the complex geopolitics at the heart of critical mineral supply chains.